Personal Trust

A A A

DEFINITION

A trust created for a person or persons. Personal trusts can be used by wealthy or middle-class beneficiaries to accomplish a variety of financial objectives. Personal trusts are separate legal entities that have the authority to buy, sell, hold and manage property for the benefit of their beneficiaries.

INVESTOPEDIA EXPLAINS

Personal trusts can take many forms. They can be revocable or irrevocable, living or testamentary. They can fund education expenses, meet special needs of beneficiaries or allow them to avoid or reduce estate taxes. They can also be separate taxable entities or pass-through entities.


RELATED TERMS
  1. Declaration Of Trust

    A statement made by the title holder of a piece of property that the property ...
  2. Estate

    All of the valuable things an individual owns, such as real estate, art collections, ...
  3. Beneficiary

    Anybody who gains an advantage and/or profits from something. In the financial ...
  4. Blind Trust

    A trust in which the executors have full discretion over the assets, and the ...
  5. Pass-Through Security

    A pool of fixed-income securities backed by a package of assets. A servicing ...
  6. Trust

    A fiduciary relationship in which one party, known as a trustor, gives another ...
  7. Incentive Trust

    A legally binding fiduciary relationship in which the trustee holds and manages ...
  8. Guarantee Company

    A form of corporation designed to protect members from liability, but which ...
  9. Laughing Heir

    A distant relative who has inheritance rights despite not having a close, personal ...
  10. Ultimogeniture

    A system of inheritance whereby the youngest son gains possession of his deceased ...
Related Articles
  1. Pick The Perfect Trust
    Retirement

    Pick The Perfect Trust

  2. How To Plan For The Charitable Giving ...
    Investing News

    How To Plan For The Charitable Giving ...

  3. Special Trusts For Special Needs
    Personal Finance

    Special Trusts For Special Needs

  4. Surprising Uses for Trust Funds
    Personal Finance

    Surprising Uses for Trust Funds

  5. Can my spouse and children collect my ...
    Insurance

    Can my spouse and children collect my ...

  6. Day-Trading Gold ETFs: Top Tips
    Trading Strategies

    Day-Trading Gold ETFs: Top Tips

  7. Must-Do Financial Moves For Same-Sex ...
    Taxes

    Must-Do Financial Moves For Same-Sex ...

  8. Financial Changes When You Marry
    Personal Finance

    Financial Changes When You Marry

  9. Major Moves Underway in Currency ETFs ...
    Chart Advisor

    Major Moves Underway in Currency ETFs ...

  10. What Baby Boomers Need To Know About ...
    Personal Finance

    What Baby Boomers Need To Know About ...

comments powered by Disqus
Hot Definitions
  1. Cash and Carry Transaction

    A type of transaction in the futures market in which the cash or spot price of a commodity is below the futures contract price. Cash and carry transactions are considered arbitrage transactions.
  2. Amplitude

    The difference in price from the midpoint of a trough to the midpoint of a peak of a security. Amplitude is positive when calculating a bullish retracement (when calculating from trough to peak) and negative when calculating a bearish retracement (when calculating from peak to trough).
  3. Ascending Triangle

    A bullish chart pattern used in technical analysis that is easily recognizable by the distinct shape created by two trendlines. In an ascending triangle, one trendline is drawn horizontally at a level that has historically prevented the price from heading higher, while the second trendline connects a series of increasing troughs.
  4. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
  5. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  6. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
Trading Center